What is the 2019 Kiddie Tax?

SOLVED•by TurboTax•149•Updated 22 hours ago

The Kiddie Tax is the tax levied on the portion of your child's unearned income that exceeds $2,200. Children who only had earned income from a job or self-employment, don’t make enough money to be required to file, or are filing jointly with their spouses are exempt from the Kiddie Tax.

The Tax Cuts and Jobs Act (TCJA) made substantial changes to the Kiddie Tax in 2018 through 2025. Instead of using the parent’s highest marginal rate, the Kiddie Tax is now determined by the tax brackets and rates for trusts and estates. Here’s what those work out to:

The first $2,600 (after the initial $2,200) is taxed at 10%

The next $6,700 is taxed at 24%

The next $3,450 is taxed at 35%

Anything beyond that is taxed at 37%

Remember that the Kiddie Tax only applies to unearned income in excess of $2,200. Here’s a step-by-step illustration of how a child with $15,000 of unearned income in 2019 would be taxed under the new law:

Regular tax rates apply to the first $2,200, which is exempt from the Kiddie Tax. The remaining $12,800 is subject to the Kiddie Tax.

The first $2,600 is taxed at 10%, leaving $10,200 to roll up to a higher rate.

We provide you with a way to opt-out of advertising activities on our websites

Third Party Advertising Vendors

We leverage outside service providers who assist us with our marketing and advertising activities. Note: by opting-out of this tracking, you may still see Intuit advertisements, but they may not be tailored to your interests.

Privacy Settings

Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.